Earlier today, emerging markets veteran Mark Mobius told UK-based IFAonline that food price rises should be absorbed into the market in emerging regions as income per capita is rapidly increasing. IFAonline also noted the following strategies of Mobius, who heads the Templeton Emerging Markets investment trust:

• His largest holding by region is Brazil at 27%, then China at 13%, South Korea 11% and Russia 11%.
• He said Brazil has performed very well and its recent investment grade rating has created further interest. Energy is one theme he is playing in Brazil and in other regions with oil and gas around 22% of the portfolio. Holdings include Petroleo Brasileiro, PetroChina, and Gazprom.
• Mobius has around 20% in banks in the region which he says have not been exposed to the subprime crisis.
• Believes that the impact of the United States as a factor in world trade is not as important as in the past.
• Does not see an end to the booming demand for resources such as energy and minerals due to rising per capita income in emerging regions.
• Africa is a “market to watch” because of its natural resources. China and Russia have already taken notice.

The Templeton Emerging Markets investment trust is up 26.5% over the past year.

Source:

“Mobius says emerging markets can weather food price hikes”
IFAonline (UK), May 14, 2008

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